Development of 68-unit apartments
Los Angeles, CA
Parkview Financial has provided a $21.5 million construction loan to Oakwood CA, LLC for the development of a 68-unit apartment property located at 4065 Oakwood Avenue in the East Hollywood submarket of Los Angeles. The fully entitled project is anticipated for completion in 2022.
Situated on an approximately .68-acre land parcel, the five-story building will consist of two studios, 25 one-bedroom units and 41 two-bedroom units with the average unit size totaling 1,059 square feet (sf). Fourteen of the units are designated for low income residents. The property will feature a 4,000-sf courtyard within the building’s U-shaped footprint that will provide common outdoor space to residents, as well as 100 parking spaces.
Adjacent to the 101 freeway, the project is immediately north of Koreatown, south of Hollywood and west of Silverlake. It is close to job hubs including Hollywood, downtown L.A., and Glendale. Historically it has been a densely populated, lower-income submarket in the center of the L.A. metro region.
“With hundreds of units under construction, this East Hollywood submarket has seen a resurgence of new development activity lately,” said Paul Rahimian, CEO and Founder of Parkview Financial. “While the pandemic has hit certain L.A. rental markets harder than others, this area has been less affected as rents are about 20 percent lower than nearby neighborhoods. Parkview saw this loan as a favorable opportunity to meet the demand for new product here as the majority of the inventory is vintage.”
He added, “Parkview believes in the long-term fundamentals of Los Angeles multifamily market. Even with some migration out of the city during and post-COVID, Los Angeles remains an under-supplied market.”
Vacancy rates in East Hollywood are typically among the lowest of any L.A. submarket, holding below 4 percent for most of the last decade and are currently around 5.6 percent due to the pandemic. Currently, there are approximately 850 units are under construction, primarily in smaller communities of less than 50 units. The development boom has just begun to arrive in this submarket as others become overheated. Renters seeking a more affordable, but central location will be attracted to this project. Additionally, the large sized units provide space for multiple renters and families.